Real estate, for example, is non-fungible since each piece of property is unique from others.Ī "fungible" token, by contrast, is one that is replaceable with another one identical to it. Many physical assets are also non-fungible. Most NFTs are based on the Ethereum ( ETH -2.17%) blockchain network.Īn NFT is a unique digital asset that is not directly replaceable with another digital asset (thus the name "non-fungible"). Think of it as a certificate such as an auto or real estate title stating the legal owner of a car or home, except that an NFT is proof of ownership in digital form. NFTs are also built on a blockchain but instead are used to guarantee ownership of an asset. Cryptocurrencies utilize blockchain for its ability to track financial transactions between parties and were designed as a type of digital currency for use on the internet and in a digital-first world. Non-fungible tokens aren't actual cryptocurrencies in the same sense as Bitcoin ( BTC -1.0%).
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